“Judicial Reform” … it is a hot topic buzz phrase going around and a lot of people are expecting our SC Legislature to do something about it in this upcoming 2024 legislative session that starts just seven days from today in Columbia on January 9th. We have been preaching it for years now (HERE) … even way before the founding of mySCGOP in 2021.

But we wanted to give you all a REAL LIFE and developing example of why we need judicial reform … even at the SC Court of Appeals level. This is just a preview of an expected court ruling coming any week now.

The SC Court of Appeals is in a quandary. Rule in favor of Jeff Davis and a plain language reading of the law … thus exposing the good ole boy legislators … or try to cover it up even more and expose the judicial system as doing the bidding of the good ole boy legislators. What will the Court do … especially in the midst of all this discussion on “judicial reform”?

The case also has to do with SCHOOL CHOICE (another hot topic for the 2024 legislative session – see HERE) … and it is a matter the founders here at mySCGOP are intimately involved with as our Chairman Jeff Davis filed the original case back on February 12th, 2020 in Newberry County. If the Court rules in favor of Jeff Davis, that will open up all the government and monied special interest “corruption” that has been going on in private school choice arena. Yes, it is a quandary for the Court.

Only a Declaratory Judgment: Know too this case wasn’t a real “lawsuit” seeking money damages, suing anyone personally, or anything like that. It was a simple DECLARATORY JUDGMENT case asking the court to simply interpret the law since no one could get the SC Department of Revenue (SCDOR – Hartley Powell), the Secretary of State’s Office (SOS – Mark Hammond) or the SC Attorney General’s Office (SCAG – Alan Wilson) to enforce a plain language reading of the law against their “friend” Chad Connelly and do anything to protect special needs children who were suffering.

THE LAW:

What was “the law”? Pretty simple! The SC school choice program … inappropriately named “Exceptional SC” … and nationally ranked as the worst school choice program in America … was only allowed, by law, to spend up to 2% of it’s donations on administrative overhead expenses. But Exceptional SC was spending well in excess of that 2% legal limit … not by a little bit, but by A LOT … reportedly 5 or 6 times the legal limit … and mainly to pay Chad Connelly’s $11,300 / mth “contracting fee“. Good “part-time” work while you build your other business (Faith Wins) if you can get it.

“The public charity may expend up to two percent of the fund for administration and related costs.”

S.C. Code Ann. § 12-6-3790(B)(4)

Jeff Davis had been screaming about the overspending trying to get Chad & Exceptional SC to stop the excess spending as the funds were intended for and coming out of children’s scholarship funds. But Chad and the Exceptional SC Board were having none of that … the overspending spending continued … and no one at SCDOR, SOS or the SCAG were willing to stop it either. Yep … the Good Ole Boy system … protect their “friend” Chad!!!

So, with no other options … Jeff sought help and direction from the SC Courts.

THE CASE:

Jeff Davis vs. Chad Connelly, Tom Persons & Exceptional SC (2020-CP-36-00093, Appeal 2020-001348): On January 15th, 2020, the SC Department of Revenue finally issued it’s legally required annual report on Exceptional SC. That report included the CPA financials that PROVED without any doubt what we all expected … that Exceptional SC was spending in excess of the 2% legal limit. So a few weeks later on February 12th, 2020, the Declaratory Judgement was filed.

Realize this case is unique in SC judicial history. No case like it had ever been filed. Typically when you donate to a non-profit, what ever the non-profit does with the money, the DONOR has no say. The only parties that can “sue” are the non-profit’s board members and the State Attorney General (neither of which were willing to do anything in this matter as they were Chad’s friends). That legal standard is universal. Only 2 other states have ever heard unique cases like this one … and both state’s Court of Appeals ruled in favor of the donor (in this situation, the Jeff Davis equivalent).

Basically the courts in those two other states found in these unique cases that if the non-profit formally agreed to use the donation for a specific purpose … they had do so … and the donor had a right to sue if the non-profit failed to do so and used the funds for something else.

In this South Carolina case it is extra clear. Not only did Exceptional SC say on it’s website that they would use 98% of donors money for special needs children’s scholarships … the LAW actually required it … and Exceptional SC did not do so … to the reported tune of $275,406. No small amount.

Judge Donald Hocker in Newberry (the hometown of Chad Connelly) ruled against Jeff Davis given the uniqueness of the case and Davis’ commitment to appeal to the SC Court of Appeals so we could get a formal ruling from a superior court.

It is now three and a quarter years later, and that appeal is ready and waiting for a ruling.

THE APPEAL:

The appeal itself was filed October 7th, 2020, and has gone though the entire process. It was initially scheduled for oral arguments in October 2023 … but after Mr. Davis appears before the Court of Appeals on September 12th, 2023 (where Jeff did mention the judicial reform issue on Live Court TV – HERE – and see Articles HERE & HERE)… the oral arguments in this case were CANCELLED … and the case was submitted to the Court of Appeals based solely on the written filings. Ask yourself … why would the Court of Appeals not what to hear oral arguments and ask questions on such an important and unique case?

Interesting right?

Well, it has been 3 months now and a ruling is expected any week. How will the Court of Appeals rule? Will they keep delaying? Is there any way on the planet that the SC Court of Appeals can rule that donors do not have “standing” to sue when THE LAW required a non-profit to use 98% of the donors donation for special needs children’s scholarships … and the non-profit executives used the funds to pay administrative overhead expenses and the Executive Director’s (Chad Connelly’s) $11,300 / mth “contracting fee”.

We can’t wait for a ruling!

A WIN / WIN: Stay Tuned …

We will use this article as background for when the actual ruling comes out … but no matter what happens this will be a WIN / WIN!

If the Court of Appeals rules in favor of Jeff Davis (& the children) … we get to go back to the trial court in Newberry and push for the recoupment of $275,406 for special needs children scholarships.

If the Court of Appeals rules against Jeff Davis (& the children) … we have Exhibit #1 in why South Carolina needs substantial “judicial reform” … not just the half measures legislators are talking about today.

Stay tuned …